Boeing Slips as New Outlook for Jet Demand Disappoints

Boeing Slips as New Outlook for Jet Demand Disappoints
Boeing Slips as New Outlook for Jet Demand Disappoints

By Dhirendra Tripathi

Investing.com – Boeing stock (NYSE:) fell 1.3% Tuesday as the manufacturer’s fresh forecast for jet demand underwhelmed.

The American plane maker sees 43,610 commercial jet deliveries worth $7.2 trillion over 20 years, an increase of 500 units from the 43,110 projected a year ago.

But the market was more focused on the shorter 10-year horizon, which the company said is likely to see 19,330 deliveries, still short of the forecast it gave in 2019 even as it is narrower from the 11% gap seen a year back.

Passenger traffic growth is projected to grow by 4% per year, unchanged from last year’s forecast but slower than the 5% growth the segment grew by at its peak around 2015.

Boeing cut its 20-year demand forecast for freighter planes to 890 units from the 930 it gave a year ago.

Demand for more than 32,500 new single-aisle planes is about equal to the pre-pandemic outlook. These models continue to command 75% of deliveries in the 20-year forecast, the company said.

Carriers will need more than 7,500 new widebody airplanes by 2040 to support fleet renewal and long-term passenger and air cargo demand growth in longer-haul markets. These projections are up slightly compared to 2020 but remain down 8% from 2019, according to the company.

 

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